Virgin 'caught in US trade fight'

VIRGIN Atlantic bosses believe the airline has become caught up in a tide of protectionism sweeping the US.

The airline, majority owned by Sir Richard Branson, has postponed taking delivery of six double-decker Airbus A380s - the world's biggest plane - because it claims Los Angeles airport will not be ready for the mammoth aircraft by late 2006.

Airbus, based in Toulouse and 20% owned by BAE Systems of Britain, is the main rival to US plane maker Boeing.

A source close to Virgin said: 'We may be the innocent victim of anti-Airbus feeling. If it was a new Boeing plane coming into LA, would there be these problems?

'We still believe the airport will not be ready to take all our passengers. LA is one of our two major routes to the US. Bigger airlines may be able to cope with all the problems, but we are not that big.'

Fears of a growing anti-Airbus mood in the US was confirmed last week by Boeing chief executive Harry Stonecipher.

He said: 'Airbus is not on a level playing field, thanks to state aid, including low-interest loans to develop aircraft like the A380. They build a lot of airplanes and they've taken a lot of our market share and they say that they're making a lot of money. If that's true, they don't need subsidies.'

Airbus said: 'We comply strictly to the rules agreed between both countries on large aircraft funding.'

It noted that about half of Boeing's new superefficient 7E7 plane was being built by the Japanese with Tokyo helping with the contract.